Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

The New IRS Form 1099-K

Posted by Mark On December 28th

IRS Form 1099-K

Starting in 2011, credit and debit card companies will begin reporting payments made to merchants on a new IRS form 1099-K to payees with over 200 sales transactions and over $20,000 in annual sales.  This amount will be reported on a separate line on a taxpayer’s applicable tax return, this will leave cash and check sales reported net of credit card sales on a separate line.

This change is an attempt to reduce underreporting of gross receipts by sellers of goods and services.  If a taxpayer takes cash sales out of the drawer to purchase merchandise and does not record the purchase and sale in its books and records, this change could trip up the IRS for underreporting of income, something to consider as you complete your 2011 tax return.

If your business needs a controller manager, please give me a call at (239) 384-9688 or contact me online.

-Mark
Naples & Fort Myers Accounting

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